The answer is the Long Tail. Chris Anderson (Wired.com) wrote the revolutional book about why Free is possible and successful as businessmodel. Google is one of the great examples, but it is online. Slowly but inevitable the ‘real world’ follows. Take Ryan Air. A low-cost airline from Ireland. It offers a ticket almost for free. London - Barcelona for only 20 dollar for example. How they do it?
(source: Wired)